DETROIT—ADT Automotive Inc. has teamed with Penske Auto Centers Inc. to create places where lease customers can drop off their vehicles at the end of their contracts. ADT is opening Service Solutions lease return centers where ADT employees inspect end-of-lease vehicles, get documents signed, collect fees for damage and/or excessive mileage from consumers and then transport the vehicles to auction—all in the same day.
ADT is a vehicle remarketing and logistics company in Nashville, Tenn., that operates 28 wholesale auto auctions. It will run the lease return centers to handle off-lease vehicles owned by banks and other financial institutions that are ADT clients.
The firm launched the centers Nov. 11 and expected to have at least 25 open by that date. About 50 will be open by year-end. Fewer than a dozen of the initial centers will be freestanding; the rest will be inside Penske stores, said Don Reig, ADT's vice president of strategic planning and development.
The first centers opened in New York, Philadelphia, Chicago, Detroit, central and southern Florida, Los Angeles, San Francisco and San Diego.
Mr. Reig said the centers will cut the time between a vehicle's lease termination and arrival at the auction from an average of 20 to 28 days down to one day, saving several hundred dollars per vehicle in interest, vehicle depreciation and collection expenses for banks and other lenders.
ADT paired with Penske because the aftermarket service centers are virtually everywhere and have a "high degree of familiarity," Mr. Reig said. Penske operates about 650 service centers at Kmart stores in the U.S.
Peter Klein, Penske's senior vice president of business development, said having lease customers drop off their vehicles at Penske creates floor traffic for the stores and enhances their services.
He said Penske is doing preinsurance vehicle inspections for two auto insurance companies and that "being connected with a company like ADT positions us well for future opportunities in the vehicle inspection business."